Herbalife Ltd. Announces Record Third Quarter 2012 And Introduces 2013 Earnings Guidance

Herbalife Ltd. (NYSE: HLF) today reported third quarter record net sales of $1.0 billion, a 14 percent increase, driven by a 17 percent increase in volume points compared to the prior year period. The company reported net income of $117.8 million, or $1.04 per diluted share, compared to the third quarter 2011 net income of $108.0 million, or $0.87 per diluted share, reflecting an increase of 9 percent and 20 percent, respectively.

“Our business momentum has continued through the third quarter with double digit volume growth from all six of our geographical regions,” said Michael O. Johnson, the company’s chairman and CEO. “Our 2013 guidance for double-digit volume and EPS growth illustrates our belief in continued growth driven by the ongoing global expansion of daily consumption and our city by city approach to deepen our penetration in existing markets.”

For the quarter ended September 30, 2012, the company generated cash flow from operations of $142.4 million, paid dividends of $32.4 million, and invested $20.0 million in capital expenditures. Also in the third quarter, the company repurchased $181.9 million in common shares outstanding, completing the $427.9 million repurchase agreement announced on May 3, 2012.

Third Quarter Regional Key Metrics 1,2

Regional Volume Point and Average Active Sales Leader Metric
Volume Points (Mil)   Average Active Sales Leaders
Region 3Q'12

Yr/Yr % Chg

Yr/Yr % Chg
North America 287.4 14 % 67,826 15 %
Asia Pacific 305.6 17 % 66,433 29 %
EMEA 145.5 10 % 44,861 14 %
Mexico 211.2 17 % 60,123 21 %
South & Central America 186.0 24 % 46,466 29 %
China 57.1 42 %   12,692 33 %
Worldwide Total 1,192.8 17 %   288,397 22 %

1 Supplemental tables that include additional business metrics can be found at http://www.ir.herbalife.com.

2 Worldwide Average Active Sales Leaders may not equal the sum of the Average Active Sales Leaders in each region due to the calculation being an average of Sales Leaders active in a period, not a summation, and the fact that some sales leaders are active in more than one region but are counted only once in the worldwide amount.

Updated 2012 Guidance

Guidance for fully diluted 2012 EPS is based on the average daily exchange rates of the first two weeks of October 2012.

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